10-year Treasury yield ends above 4% for first time since July on brighter economic picture

By Vivien Lou Chen

The benchmark 10-year Treasury yield finished at its highest level in more than two months on Monday, as traders continued to sell off U.S. government debt following last week's stronger-than-forecast jobs data.

What happened

-- The yield on the 2-year Treasury BX:TMUBMUSD02Y climbed 7.2 basis points to 4.001%, from 3.929% on Friday. That was its highest closing level since Aug. 22.

-- The yield on the 10-year Treasury BX:TMUBMUSD10Y rose 4.5 basis points to 4.025%, from 3.980% on Friday.

-- The yield on the 30-year Treasury BX:TMUBMUSD30Y rose 3.7 basis points to 4.304%, from 4.267% on Friday.

-- Monday's closing levels were the highest for 10- and 30-year yields since July 31.

See also: What a 10-year Treasury yield above 4% says about the economy

What drove markets

The bond market continued to sell off after Friday's data showed nonfarm payrolls rose by a greater-than-expected 254,000 new jobs, while the unemployment rate fell to 4.1% from 4.2% previously. Job gains were also upwardly revised for August and July.

"September's job growth was not just 100,000 better than expected, [but] it was accompanied by a big upward revision," said Chris Low, chief economist of FHN Financial in New York. "As a result, the whole economic picture looks brighter."

This week's auctions of U.S. government debt commence with a $58 billion sale of 3-year notes on Tuesday. Still ahead for later this week is Thursday's release of the September consumer-price index.

Read: Stock market's soft-landing rally faces CPI inflation test. Here's what investors should do.

-Vivien Lou Chen

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10-07-24 1546ET

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